On Wednesday October 20, 2010, 5:48 pm EDT
Fed survey points to uneven
growth across US
WASHINGTON (AP) -- The U.S.
economy grew unevenly in early fall, with more than half the regions of the
country expanding modestly while others struggled to grow.
A survey by the Federal
Reserve released Wednesday found that seven of the Fed's 12 regions reported
moderate improvements in business activity. Three regions -- Philadelphia,
Richmond and Cleveland -- described economic activity as mixed or steady. Only
two regions -- Atlanta and Dallas -- suggested economic growth was slow.
The survey indicated that
the economy isn't weakening but is growing too sluggishly to drive down high
unemployment, now at 9.6 percent. The jobless rate has been at or above 9.5
percent for more than a year.
Delta, AMR, US Airways post
3Q profits
DALLAS (AP) -- Airlines
can't control the economy, but by limiting the number of seats for sale they
are pushing up fares and earning their biggest profits in three years.
Delta, US Airways and the
parent of American Airlines all posted higher-than-expected earnings for the
peak summer travel season. They were helped by rapid growth in international
traffic and a budding recovery in corporate travel. Delta gave an upbeat
outlook for the upcoming holidays.
Investors rewarded the
companies by driving airline stocks sharply higher.
Airline stocks lead market
rally; Dow up 129
NEW YORK (AP) -- Airline
stocks helped lead a market rebound on Wednesday that nearly erased Tuesday's
big-sell off brought on by concerns over a slowdown in China.
Stocks rose as traders saw
overnight gains in China as an encouraging sign that the country's surprise
interest rate hike will not dampen the global economy.
A batch of positive
corporate earnings reports from companies like Delta Air Lines Inc., American
Airlines parent company AMR Corp. and Boeing Co. also helped send the stock
market broadly higher.
Wells Fargo profit rises as
loan defaults ease
NEW YORK (AP) -- Wells
Fargo & Co. reported a 19 percent increase in its third-quarter income
Wednesday as losses from bad loans declined, a hopeful sign that American
businesses and consumers are becoming more financially stable.
The San Francisco-based
bank earned $3.15 billion, or 60 cents per share, in the three months ending in
September, beating analysts' expectations by 5 cents per share. The bank earned
$2.64 billion, or 56 cents per share, in the same period a year earlier.
Fewer of Wells Fargo's
customers defaulted on loans, and fewer were late in payments on their mortgage
and credit cards. It was a common theme with other large U.S. banks that have
reported results so far this quarter.
Boeing tops 3Q forecasts as
it sells more planes
MINNEAPOLIS (AP) -- Boeing
posted an $837 million third-quarter profit on Wednesday and raised its profit
guidance for the full year as it sold more commercial airplanes.
Boeing has already made
plans to raise production rates on the 737, its best-selling plane. The
improved 2010 guidance reflects a strong outlook for commercial planes. Orders
and deliveries have rebounded this year, reversing a decline that occurred when
airlines pulled back on orders during the recession.
Boeing expects to deliver
460 commercial planes this year, at the low end of what it predicted in April.
The aircraft maker repeated
its hope to deliver the new 787 in the middle of the first quarter of 2011, and
the latest version of the 747 in the middle of the year. Both planes are late
-- more than two years for the 787.
Morgan Stanley posts 3Q
loss on special charges
NEW YORK (AP) -- Morgan
Stanley became the latest investment bank to report weaker results Wednesday
from a trading slowdown during the summer.
The New York-based bank
reported a net loss during the third quarter as revenue fell 20 percent and
because of some special one-time charges. Even stripping out the charges,
adjusted earnings tumbled from the year-ago period.
6 months after oil spill,
much remains unknown
NEW ORLEANS (AP) -- The
crude has stopped gushing and coastlines are largely clear of the thick goo
that washed ashore for months, but the impact of the worst offshore oil spill
in U.S. history will no doubt linger for years.
Six months after the April
20 Deepwater Horizon explosion, the environment and economy of the entire
northern Gulf of Mexico region remain in a state of uncertainty, with
overturned livelihoods, out-of-work fishermen, reluctant tourists, widespread
emotional anguish and untold damage to the sea and its shores.
It could be years before
the spill's true effects are understood. The science is largely scattered about
what the roughly 200 million gallons of oil that spewed from BP PLC's blown-out
well -- some 170 million gallons of which actually spilled into the Gulf --
will ultimately mean for the animals and plant life that inhabit one of the
world's most diverse bodies of water.
Apple looks to iPhone, iPad
for Mac inspiration
CUPERTINO, Calif. (AP) --
Apple's iPhone and iPads have been such hits that the company is now looking
for ways to bring some of their cachet to its laptops and desktops.
Apple Inc. offered glimpses
on Wednesday of an updated Mac operating system, called Mac OS X Lion. The
company highlighted features that borrow from the lighter-weight iOS that runs
on its mobile gadgets.
The company also unveiled
two new versions of its MacBook Air ultralight laptops.
Netflix posts higher 3Q
earnings as revenue grows
LOS GATOS, Calif. (AP) --
Netflix Inc. on Wednesday said its third-quarter net income grew as the online
movie rental company continued to attract subscribers, particularly to its
Internet streaming service.
The company also raised its
subscriber growth forecast for the current quarter, sending shares higher in
after-hours trading.
It now expects to have
between 19 million and 19.7 million subscribers at the end of this year, up
from its earlier forecast of 17.7 million to 18.5 million.
By The Associated Press
The Dow Jones industrial
average rose 129.35, or 1.2 percent, to 11,107.97. The broader Standard and
Poor's 500 index was up 12.27, or 1.1 percent, to 1,178.17, and the
technology-focused Nasdaq composite index was up 20.39, or 0.8 percent, to
2,457.39.
Benchmark crude for
November delivery rose $2.28 to settle at $81.77 a barrel on the New York
Mercantile Exchange. That contract expired Wednesday and trading moved to the
December contract, where oil climbed by $1.38 to settle at $82.54 a barrel.
In other Nymex trading in
November contracts, heating oil rose 6.55 cents to settle at $2.2548 a gallon,
gasoline gained 3.43 cents to settle at $2.0826 a gallon and natural gas added
2.6 cents to settle at $3.539 per 1,000 cubic feet.
In London, Brent crude rose
$2.50 to settle at $83.60 a barrel on the ICE Futures exchange.